Audit of the Financial Sustainability of USAID/Afghanistan’s Energy Sector Programs.

Country: AfghanistanFiscal Year: 2012Agency: USAIDAudit Report Available: NoDescription: Since 2004, USAID/Afghanistan has committed approximately $1 billion to help reconstruct Afghanistan’s energy sector. USAID/Afghanistan has 12 active energy sector awards totaling $489 million and has completed 17 other programs totaling $569 million.
Programs implemented by USAID/Afghanistan include constructing new power plants and substations; refurbishing existing hydroelectric power plants; upgrading or installing new transmission lines; providing operations and maintenance support of diesel generators; installing alternative sources of power such as solar, wind and micro hydro systems; and providing assistance with commercializing the energy sector.
In addition, USAID/Afghanistan has purchased $121 million in fuel to operate diesel generators. Because a large portion of the Afghan Government’s operating budget came from foreign donors last year, the facilities may not be sustainable once they are turned over to the Afghan Government.
The audit will determine whether the Government of Afghanistan earns enough revenue to operate and maintain its electrical infrastructure, including the infrastructure financed by USAID/Afghanistan.